Bare Land Loans

Loan Fee:  3-5% (with a $3,000 Minimum Fee) 
Processing Fee: $965.00; 
Interest Rates:  Very Competitive
Loan to Value:  Not Greater Than 65% 

Overview:

Bare land private money loans are an interesting item.  Some private lenders hate bare land because if they have to take it back there is no possibility of getting rental income.  But there are some private lenders who like bare land loans, because there is no maintenance or rental headaches if they have to take the property back.  

Either way, bare land has a more limited resale market than improved residential property.  This is the reason that few, if any commercial banks will lend on bare land at the current time.

If you find a client looking for a loan on bare land, then private/hard money is one of the few options available.  Loan to value guidelines for private investors are stricter on bare land, so rarely will you find someone will to exceed 65% of value.  As with anything that has to do with private/hard money lending, nothing is written in stone, unless of course it is written by the government.  Typically however, bare land loans are exempt from government regulation with the exception of usury laws.

As with other types of private/hard money loans, nothing is as easy as it used to be.  In the old days, (that would be a couple of years ago), income and credit mattered very little to private/hard money lenders in Oregon.

To build your case for a private/hard money bared land loan, be prepared to show the following:

1.    2 years tax returns for both personal and business (if applicable).
2.    W-2’s and current paystubs (if applicable).
3.    A current financial statement, both personal and business.
4.    A YTD profit and loss statement.
5.    A YTD income statement.
6.    Credit Report.
7.    Business and personal bank statements.    

A lender is also going to want to see a preliminary title report and a history of the property taxes, zoning and permits.  

Unless the transaction is a purchase with a 40-50 percent cash down payment, the client should also be prepared to pay for an appraisal!

For a frank and confidential conversation to determine if private lending and working with us is right for you, please contact us!